We refer to your letter dated 25th July 2000.
We hereby undertake that in our future annual reports, we shall state the expiring date of the lease on all leasehold properties/buildings held by us.
Regarding your advice over the composition of our Audit Committee members, we are proceeding forthwith to rectify the situation by Mr Tan Kie Lu resigning as an Audit Committee member and we shall make the necessary announcement to the Exchange.
We also undertake to comply all the above within 2 weeks of your letter.
With regard to the above, kindly furnish the Exchange with your written undertaking that the following Clause of the Second Board Listing Requirements ("SBLR") will be incorporated in your future annual reports :-
Clause 3.26(2)(c) - To state the expiry date of the lease on all the leasehold properties/buildings.
We would also like to draw your attention to the composition of your Audit Committee appearing on page 8 of your Company's 1999 Annual Report.
Clause 1.19 of the SBLR and Section 344A(2) of the Main Board Listing Requirements require the majority of the Audit Committee members, including the Chairman, to be independent non-executive directors.
We wish to inform that, for the purpose of determining the independence of a director, a director who holds 5% or more of a company's issued and paid-up share capital shall not be deemed as an independent director.
We note from your 1999 Annual Report that the majority of your Audit Committee members are not independent non-executive directors as two out of the four Audit Committee members, namely Mr Heng Hong Chai and Mr Tan Kie Lu, has 29.13% and 7.49% equity interest respectively in the Company.
In this connection, please note to rectify the above situation within two (2) weeks from the date hereof and make the necessary announcement to the Exchange.
Latifah Haji Mohd Yusof Tan Yew Eng
Senior Vice President, Listing Operations Senior Manager, Listing Operations